Which is better: Fixed or adjustable-rate mortgage?

It is a difficult decision to decide between a fixed and an adjustable-rate mortgage. Factors such as loan duration, the index used by the lender, the number and timing of rate adjustments, and your assumption about the increase/decrease of future interest rates all have an impact. Use this calculator to help compare the total cost of each alternative.

Mortgage Alternatives and Assumptions

Loan amount ($)

Fixed-Rate Loan(0% to 40%)

Adjustable-Rate Loan(0% to 40%)

(Initial) annual interest rate

Number of years

Index Rate Detail

Current index rate (0% to 40%)

Lenders margin added to index rate (0% to 40%)

Index rate adjustment (0% to 200%)

Number of months between index rate adjustments (1 to 480)

What will rates be doing over the life of the loan: stay same, increase or decrease?